Study Shows Lowest-Income Californians Pay Larger Share of Taxes

Proposition 30 increased taxes temporarily on the wealthiest Californians. Despite that, a new study shows its low-income families that pay a larger percentage of their income in state and local taxes.

The California Budget Project report shows families making just $13,000 a
year pay more than 10-percent of their income in state and local
taxes.

The wealthy? 8-percent. That includes families making
$1.6-million.

Why? Chris Hoene with the Budget Project says part of the reason
is the tax loopholes and credits that aren't working the way they
are designed to.

But it's also the tremendous rise in wealth.

"California actually does, because of the progressive nature of
the tax system capture a lot more revenue from its wealthy
individuals," says Haney. "It's just that we have such a
disproportionate share of the wealthiest people in the country and
in the world that we still don't actually keep up with the actual
growth in their incomes and wealth."

The report also shows that corporate profits in the last decade
have increased by 412-percent, while personal income has increased
just 30-percent.